Private valuers to undertake valuation for stamp duty

Earlier in the year, the Government allowed the use of private valuers for the assessment of stamp duty on land transfer transactions. This is anticipated to reduce delays hitherto occasioned by the exclusive use of government valuers who have always been rather few. The Stamp Duty (Valuation of Immovable Property) Regulations 2020, contained in Legal Notice No 151 of 5^th August, 2020, gives property buyers the option to use either government or private valuers to assess stamp duty of their properties. The Regulations mandate the Chief Government Valuer to maintain a list of ‘appointed valuers’, which means a list of private valuers appointed by the Chief Government Valuer under the Stamp Duty Act.

Applications invited from interested private valuers

The government, through the line Ministry of Lands and Physical Planning, has moved with speed to invite applications from interested private valuers for consideration as ‘appointed valuers’ as provided. A notice dated 7^th December, 2020 hangs on the Ministry’s website, inviting applications to reach the Chief Government Valuer by 23^rd of December. Interested private valuers must possess a current practicing license and must have a valid tax compliance certificate from the Kenya Revenue Authority. Such valuers must also possess individual professional indemnity cover.

It is hoped that valuers registered under the Valuers Registration Board will apply within the timeline. The Chief Government Valuer will then process and maintain a list of ‘appointed valuers’ for use by the public. One hopes that the spectrum of applications will be wide enough so that we have private valuers available to service the urban and rural registries. Trend is that most professionals are within the major urban Counties, leaving most rural ones with a thin spread. While valuation for stamp duty workload is heaviest in the big land registries, I have witnessed transaction delays in the minor registries on account of unavailable or overworked government valuers. One therefore hopes that we will have enough private valuers to spread out.

Need to embrace technology, transparency and efficiency

This new approach throws the Chief Government Valuer to the center stage of a very important national issue. The office will be under constant watch and pressure, as real estate practitioners evaluate the future efficiency and speed of land transfer transactions. To enhance efficiency, this office must fully embrace technology and transparency. Once the list of valuers is for instance available, it should be possible for the Chief Government Valuer to have it posted on the Ministry’s website, make it available in all land registries and the Institution of Surveyors of Kenya, which can disseminate the information.

Red tape in choosing valuers from the list should also be minimized. One should not for instance have to physically visit the land registry for the purpose. And because the Chief Government Valuer will be accountable to valuation reports submitted by private valuers, internal procedures that are open and expedient must be established early enough to pre-empt delays and pile ups.

Dated: 11^th December, 2020